Drysdale Village owners ride Geelong population boom
Drysdale’s main shopping centre has hit the market as investors in major retail assets warm to the region’s strong returns and population growth.
Drysdale Village, the 3130sqm enclosed single level neighbourhood centre in the town’s CBD in anchored by a Woolworths supermarket and seven speciality retailers.
The private owners of 20 years are selling the 8349sqm property fully leased, with an annual income of nearly $1 million.
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Industry sources suggest the property could sell for more than $15 million.
Woolworths’ 20-year lease expires in 2024, while other tenants include Hommy’s Quality Meats, JR’s Cafe, Baker’s Delight and National Australia Bank.
Leopold’s Gateway Plaza sold for $117 million in June. Picture: Glenn Ferguson.
CBRE state director retail investments Justin Dowers, who is handling the selling campaign with Mark Wizel, says the centre’s strong leasing profile and the Geelong region’s rapid population growth are compelling reasons for investors to act.
“Geelong is one of Victoria’s fastest-growing regions with a forecast 32 per cent increase in population by 2036, while the Bellarine Peninsula is expected to experience an even stronger rate of growth, delivering the sort of catchment which underpins the most successful neighbourhood centres,” Dowers says.
“We are also seeing shopping centre investments in the Geelong region trade at similar returns and pricing levels of metropolitan Melbourne and that is very attractive to investors.”
The centre is the fourth listed on the peninsula in 12 months, after Leopold’s Gateway Plaza sold for $117 million and Coles’ listed its standalone Drysdale supermarket in June. St Leonards’ IGA freehold was auctioned last year.
Coles’ standalone Drysdale supermarket has also been listed for sale.
Other centres in the region to sell this year include Torquay Village ($35 million), Bellarine Village ($36.5 million) and Belmont Village ($58 million). Vicinity Centres is selling the Corio Shopping Centre, while Australian Unity was selling its 50% stake in Waurn Ponds Shopping Centre, which have a combined value of around $310 million.
Dowers says owners are taking confidence in the level of demand in the region.
“Population growth for shopping centres is like oxygen — it’s very important,” he says.
“There is a lot of population growth in Geelong and the surrounding areas.
“People are moving to Geelong and Bellarine Peninsula because it could be a better lifestyle, much more affordable and they can still access employment.”
The property will be sold by expressions of interest closing November 30.
This article originally from the Geelong Advertiser originally appeared as “Private owners list Drysdale Village as region’s population soars”.
